Pakistan Islamic Index launched

Dow Jones Indexes, a leading global index provider, and JS Group, Pakistan''s premier financial group, on Wednesday announced the launch of Dow Jones-JS Pakistan Islamic Index. The index measures the performance of companies in the local stock market that pass screens for compliance with Islamic principles.
This is the first time that a dedicated Islamic Index for Pakistan has been launched by a major global index provider. The Dow Jones-JS Pakistan Islamic Index is designed to serve as an underlying index for investment products such as mutual funds, exchange-traded funds (ETF5) and other investable products.
JS & Company Limited executive director Ali Raza Siddiqui while briefing the press said that Pakistan, at this point in time, was perhaps one of the most attractive emerging markets across the globe.
The launched Index will provide an exciting opportunity for Shariah-compliant investors globally to benefit from the phenomenal growth that the Pakistani markets have been experiencing for the last two years, he said.
The components of the index are weighted by free-float market capitalisation, subject to a 10 percent cap on the weight of any individual security.
The Index will be reviewed quarterly in March, June, September and December. Historical index values are available back to June 30, 2004. The base value of the index is set at 10,000 as of that date.
Excluded from the Index are stocks of companies that operate in alcohol, tobacco, pork-related products, financial services, defence/weapons, and entertainment. Also excluded are companies that fail any of three financial ratios: total debt divided by trailing 12-month average market capitalisation that is greater than or equal to 33 percent; cash plus interest-bearing securities divided by trailing 12-month average market capitalisation that is greater than or equal to 33 percent; and accounts receivables divided by total assets that is greater than or equal to 33 percent.
"The Dow Jones-JS Pakistan Islamic Index will raise the confidence level of global investors looking for Shariah-compliant opportunities in the Pakistan stock market. The successful launch of this index follows the dedicated work of our six member Shariah Supervisory Board, which includes former Justice Mohammad Taqi Usmani," said A Rushdi Siddiqui, Global Director, Dow Jones Islamic Market Index Group.
JS & Company CEO Munaf Ibrahim and Nadia Munawar Siddiqui, Head of Corporate Communications, were also present on the occasion.